The zero trust security market is forecast to triple to $82B by 2030, spurred forward by growing demand for cybersecurity products to combat rising cybercrime incidents.
I am expecting ‘acceleration’ in my CyberSecurity portfolio, taking share from the above growth.
Cloudflare’s revenue growth trend?
Q1 +5.6%, and now Q2 +6.3% despite seasonality. Cloudflare guided for $330.5M (7.1% QoQ, 30% YoY) and after extrapolating Q4, QoQ revenue growth went from 5.6% in Q1 to 6.3% in Q2 and is guided to 7.1% in Q3 and I can expect 7.7% in Q4. To keep everything in context, Cloudflare RevGrowth QoQ: Q4 8.2% was their weakest since IPO, to date.
Crowdstrike looking good, grew ARR by 37% YoY.
…numbers that the company delivered outside of endpoint security were just staggering. The company entered the SIEM space just over a year ago. Its major competitor in that space is Splunk; Splunk grew 12% last quarter and Crowdstrike is approaching $100 million of ARR, up by 200% year over year. The company offers an Identity protection solution that is based on the technology acquired when it bought Preempt. This business is now at a $200 million ARR level, having grown 194% year on year. The company is also seeing substantial traction in XDR as it leverages the technology of its acquisition of Humio.
Possibly under-appreciated, IMO:
George Kurtz, in prepared remarks from Q2 CC-
“The cloud security market opportunity is massive and growing rapidly with the potential to reach $18 billion in calendar year 2026. Cloud exploitation by adversaries increased 95% year-over-year and the only way to stop threats at all time is with a fully-fledged agent and agentless cloud suite like Falcon. Only CrowdStrike delivers a fully integrated CNAPP solution that unifies cloud workload protection, cloud security posture management, cloud infrastructure entitlement management, threat intelligence and threat hunting in one platform across hybrid and multi-cloud environments. Our leadership in cloud security was recognized in Frost & Sullivan’s recently published 2023 Frost Radar, Cloud Workload Protection Platform report based on our impressive CWPP business growth, our comprehensive cloud visibility and our unrivaled cloud detection and response services.”.
Zscaler reported 38% Billings Growth YoY, last week, and grew large customers by 7.3% QoQ, significantly exceeding my expectation. What moved me most, Zscaler grew $1M customers by 12.3% QoQ, adding a record 49 this Q.
Kept my ~10% position in Crowdstrike. Sold some of my ~19% position in Cloudflare to buy back a ~5% position in Zscaler after Earnings.